It seems that crude oil is set up in a corrective wave pattern that could lead to a strong bullish move up. Crude Oil has shown signs that the recent downtrend may soon be coming to an end. After exhibiting five waves similar to Elliot waves, crude oil has started to form a corrective pattern. Todays
Summary
- Recent Crude Oil reports from the EIA have shown drawdowns in US Stockpiles.
- Rumors from OPEC to soon cap Libya and Nigeria output
- After retracing to the 78.6% of each move, during prior moves down, the most recent move down retraced to only 50% retracemnet of the move.
- The downtrend failed to capture a new lower low
With the above factors in mind, we are watching for any sign of a new upward trend. Here is a summary today's EIA below if you missed it.
Source: EconDay
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